Exhibit 99.1
Cash America Reports First Quarter Results and Declares Dividend
FORT WORTH, Texas--(BUSINESS WIRE)--April 21, 2005--Cash America
International, Inc. (NYSE:CSH) announced today that income from
continuing operations for the first quarter ended March 31, 2005 were
up 30% compared to the first quarter of 2004. The results for the
first quarter of 2005 include an after-tax loss of $315,000 related to
foreign currency conversion equal to 1 cent per share. Income from
continuing operations was $11,902,000 (39 cents per share) for the
three-month period in 2005 compared to $9,142,000 (31 cents per share)
in the same quarter in 2004.
Total revenue for the first quarter rose 24% to $145 million in
2005 versus $117 million during the same period in 2004. Revenue gains
were led by service charges on pawn loans, which were up 26% and a 44%
increase in fees related to cash advances. Sales from the disposition
of merchandise increased 17% in the quarter and gross profit margin
was consistent from the same quarter in 2004. This led Cash America to
report a 27% increase in net revenue for the three-month period to $97
million.
Commenting on the results of the quarter, Daniel R. Feehan,
president and chief executive officer of Cash America said, "While we
posted improved results from the same quarter last year, the first
quarter did not meet our expectations as revenue from our two
principal lending products did not reach our expected levels in the
quarter. Product demand did not recover in the latter stages of the
quarter contributing to the shortfall. The related impact of lower
revenue is particularly sensitive to the profitability of the 107 cash
advance units established over the last twelve months and caused their
contribution to earnings in the first quarter to be less than we
anticipated."
Cash America also reaffirmed its announcement on April 15, 2005
that at this time it is unable to provide earnings expectations for
future periods in fiscal 2005 because of uncertainties surrounding the
FDIC's new guidance affecting short-term cash advances. The guidance
will restrict the offering of short-term cash advances by
FDIC-regulated banks, and two of those banks offer cash advances
through many of Cash America's stores. The banks have submitted their
plans to the FDIC for compliance with the new guidance. At this point,
the Company does not know when or to what extent the banks' cash
advance business will change as a result of the compliance plans that
the FDIC may ultimately approve. Therefore, the Company cannot predict
with any degree of certainty the extent to which the eventual change
in the banks' cash advance business will impact Cash America's
earnings. The Company intends to publish guidance in the future when
the situation involving the banks' cash advance business becomes
certain enough for it to do so.
Cash America will host a conference call to discuss the first
quarter results on Thursday, April 21 at 3:45 PM CDT. A live web cast
of the call will be available on the Investor Relations section of the
Company's corporate web site (www.cashamerica.com). To listen to the
live call, please go to the web site at least fifteen minutes early to
register, download, and install any necessary audio software.
Additionally, the Company announced that the Board of Directors,
at its regularly scheduled quarterly meeting, declared a $0.025 (2.5
cents) per share cash dividend on common stock outstanding. The
dividend will be paid to shareholders of record on May 4, 2005, and
will be paid at the close of business on May 18, 2005.
Cash America International, Inc. is a provider of specialty
financial services to individuals in the United States with 851 total
locations. Cash America is the largest provider of secured
non-recourse loans to individuals, commonly referred to as pawn loans,
through 452 locations in 21 states under the brand name Cash America
Pawn and SuperPawn. The Company also offers short-term cash advances
in many of its U.S. locations including 264 locations that offer this
service under the brand names Cash America Payday Advance and
Cashland. In addition, check cashing services are provided through its
135 franchised and Company-owned "Mr. Payroll" check cashing centers.
This release contains forward-looking statements about the
business, financial condition and prospects of Cash America
International, Inc. and its subsidiaries ("the Company"). The actual
results of the Company could differ materially from those indicated by
the forward-looking statements because of various risks and
uncertainties including, without limitation, changes in demand for the
Company's services, the actions of third parties who offer products
and services at the Company's locations, changes in competition, the
ability of the Company to open new operating units in accordance with
its plans, economic conditions, real estate market fluctuations,
interest rate fluctuations, changes in the capital markets, changes in
tax and other laws and governmental rules and regulations applicable
to the Company's business, and other risks indicated in the Company's
filings with the Securities and Exchange Commission. These risks and
uncertainties are beyond the ability of the Company to control, and,
in many cases, the Company cannot predict all of the risks and
uncertainties that could cause its actual results to differ materially
from those indicated by the forward-looking statements. When used in
this release, terms such as "believes", "estimates", "plans",
"expects", "anticipates" and similar expressions as they relate to the
Company or its management are intended to identify forward-looking
statements. The Company disclaims any intention or obligation to
update or revise any forward-looking statements to reflect events or
circumstances occurring after the date of this release.
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
HIGHLIGHTS OF CONSOLIDATED RESULTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended
March 31,
----------------------
2005 2004
------------ ---------
Consolidated Operations:
Total revenue $144,989 $117,018
Net revenue $97,034 $76,189
Total operating expenses $75,782 $59,643
Income from operations $21,252 $16,546
Income from continuing operations before
income taxes $18,849 $14,454
Income from Continuing Operations $11,902 $9,142
Income from Discontinued Operations $-- $2,248
Net Income $11,902 $11,390
Income per share:
Basic --
Income from continuing operations $0.41 $0.32
Net income $0.41 $0.40
Diluted --
Income from continuing operations $0.39 $0.31
Net income $0.39 $0.39
Weighted average shares:
Basic 29,332 28,241
Diluted 30,396 29,453
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
March 31,
-------------------- December 31,
2005 2004 2004
--------- ---------- ------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $11,874 $9,230 $15,103
Pawn loans 97,307 73,017 109,353
Cash advances, net 30,318 23,976 36,490
Merchandise held for
disposition, net 59,466 43,233 67,050
Finance and service charges
receivable 17,789 13,763 20,458
Other receivables and prepaid
expenses 11,941 8,028 10,547
Deferred tax assets 8,372 6,468 9,293
Current assets of discontinued
operations -- 83,687 --
--------- ---------- ------------
Total current assets 237,067 261,402 268,294
--------- ---------- ------------
Property and equipment, net 88,906 68,357 87,612
Goodwill 164,374 104,477 164,073
Intangible assets, net 23,558 4,457 24,361
Other assets 11,212 1,811 10,825
Non-current assets of discontinued
operations -- 30,934 --
--------- ---------- ------------
Total assets $525,117 $471,438 $555,165
========= ========== ============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued
expenses $27,054 $24,977 $33,854
Customer deposits 6,358 4,858 5,686
Income taxes current payable 6,009 3,764 2,505
Current portion of long-term
debt 16,786 8,286 16,786
Current liabilities of
discontinued operations -- 2,909 --
--------- ---------- ------------
Total current liabilities 56,207 44,794 58,831
Deferred tax liabilities 10,520 5,830 10,999
Other liabilities 1,404 1,454 1,559
Long-term debt 113,617 113,892 149,840
Non-current liabilities of
discontinued operations -- 16,221 --
Stockholders' Equity:
Common stock, $.10 par value per
share, 80,000,000 shares
authorized; 30,235,164 shares
issued 3,024 3,024 3,024
Additional paid-in capital 154,945 142,743 154,294
Retained earnings 199,050 152,538 187,860
Accumulated other comprehensive
income -- 8,879 --
Notes receivable secured by
common stock (2,488) (2,488) (2,488)
Treasury shares at cost (997,620
shares, 1,956,372 shares and
938,386 shares at March 31,
2005 and 2004 and December 31,
2004, respectively) (11,162) (15,449) (8,754)
--------- ---------- ------------
Total stockholders' equity 343,369 289,247 333,936
--------- ---------- ------------
Total liabilities and
stockholders' equity $525,117 $471,438 $555,165
========= ========== ============
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousand, except per share data)
Three Months Ended
March 31,
-------------------
2005 2004
---------- --------
(Unaudited)
Revenue
Finance and services $33,919 $26,872
Proceeds from disposition of merchandise 78,741 67,048
Cash advance fees 28,310 19,656
Check cashing royalties and fees 4,019 3,442
---------- --------
Total Revenue 144,989 117,018
Cost of Revenue
Disposed merchandise 47,955 40,829
---------- --------
Net Revenue 97,034 76,189
---------- --------
Expenses
Operations 53,673 41,568
Cash advance loss provision 5,634 3,044
Administration 10,909 11,107
Depreciation and amortization 5,566 3,924
---------- --------
Total Expenses 75,782 59,643
---------- --------
Income from Operations 21,252 16,546
Interest expense 2,337 2,131
Interest income (418) (39)
Foreign currency transaction losses 484 --
---------- --------
Income from Continuing Operations before Income
Taxes 18,849 14,454
Provision for income taxes 6,947 5,312
---------- --------
Income from Continuing Operations 11,902 9,142
---------- --------
Income from discontinued operations before income
taxes -- 3,232
Provision for income taxes -- 984
---------- --------
Income from discontinued operations -- 2,248
---------- --------
Net Income $11,902 $11,390
========== ========
Earnings Per Share:
Basic --
Income from continuing operations $0.41 $0.32
Income from discontinued operations $ -- $0.08
Net income $0.41 $0.40
Diluted --
Income from continuing operations $0.39 $0.31
Income from discontinued operations $ -- $0.08
Net income $0.39 $0.39
Weighted average common shares outstanding:
Basic 29,332 28,241
Diluted 30,396 29,453
Dividends declared per common share $0.0250 $0.0175
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
FINANCIAL AND OPERATING DATA - CONTINUING OPERATIONS
($ in thousands)
Three Months Ended
March 31,
-------------------
2005 2004
------- -------
PAWN LENDING OPERATIONS:
Pawn loans
Annualized yield on pawn loans 135.2% 143.1%
Total amount of pawn loans written and
renewed $97,830 $76,564
Average pawn loan balance outstanding $101,736 $75,507
Average pawn loan balance per average
location in operation $231 $190
Average pawn loan amount at end of
period (not in thousands) $88 $85
Profit margin on disposition of merchandise
as a percentage of proceeds from
disposition of merchandise 39.1% 39.1%
Average annualized merchandise turnover 3.0x 3.5x
Average balance of merchandise held for
disposition per average location in
operation $145 $118
Pawnshop locations in operation -
Beginning of period, owned 441 398
Start-up 1 --
Combined or closed (1) (2)
End of period, owned 441 396
Franchise locations at end of period 11 6
Total pawnshop locations at end of period 452 402
Average number of owned pawnshop
locations in operation 441 397
Cash advances
Total amount of cash advances written(a) $56,740 $44,639
Number of cash advances
written (not in thousands)(a) 170,578 138,954
Average amount per cash advance
(not in thousands)(a) $333 $321
Combined cash advances outstanding(a) $14,692 $10,947
Cash advances outstanding per location at
end of period(a) $34 $28
Cash advances outstanding before allowance
for losses(b) $9,059 $9,764
Locations offering cash advances at end of
period 427 388
Average number of locations offering
cash advances 427 389
CASH ADVANCE OPERATIONS (c):
Total amount of cash advances written $122,085 $77,750
Number of cash advances written
(not in thousands) 350,550 228,924
Average amount per cash advance
(not in thousands) $348 $340
Combined cash advances outstanding(a) $28,146 $17,076
Cash advances outstanding per location at
end of period $107 $104
Cash advances outstanding before allowance
for losses(b) $24,355 $16,860
Cash advance locations in operation -
Beginning of period 253 154
Start-ups 13 10
Combined or closed (2) --
End of period 264 164
Average number of locations in operation 258 159
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
FINANCIAL AND OPERATING DATA - CONTINUING OPERATIONS (Continued)
($ in thousands)
Three Months Ended
March 31,
---------------------
2005 2004
----------- ---------
CHECK CASHING OPERATIONS (Mr. Payroll
Corporation) (d):
Face amount of check cashed $337,028 $322,187
Gross fees collected $5,014 $4,799
Fees as a percentage of checks cashed 1.5% 1.5%
Average check cashed (not in thousands) $418 $422
Centers in operation at end of period 135 137
Average centers in operation for the period 135 137
(a) Includes cash advances made by the Company and cash advances made
by third-party banks offered at the Company's locations.
(b) Amounts recorded in the Company's consolidated financial
statements.
(c) Includes only cash advance locations.
(d) Includes franchised and company-owned locations.
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED CASH ADVANCES OUTSTANDING
($ in thousands)
March 31,
-----------------
2005 2004
--------- --------
Originated by the Company
Active cash advances and fees receivable $20,341 $14,912
Cash advances and fees in collection 3,446 2,766
---------- --------
Total originated by the Company 23,787 17,678
---------- --------
Originated by banks
Active cash advances and fees receivable 15,149 8,230
Cash advances and fees in collection 3,902 2,115
---------- --------
Total originated by banks 19,051 10,345
---------- --------
Combined gross portfolio 42,838 28,023
Less: Elimination of cash advances owned by banks 8,855 1,015
Less: Discount on cash advances assigned by banks 569 384
---------- --------
Company cash advances and fees receivable, gross 33,414 26,624
Less: Allowance for losses 3,096 2,648
---------- --------
Cash advances and fees receivable, net $30,318 $23,976
========== ========
ALLOWANCE FOR LOSSES ON CASH ADVANCES
($ in thousands)
Three Months Ended
March 31,
-------------------
2005 2004
---------- --------
Company Owned Cash Advances
- ---------------------------
Balance at beginning of period $4,358 $3,393
Cash advance loss provision 5,681 3,058
Charge-offs (9,841) (5,879)
Recoveries 2,898 2,076
---------- --------
Balance at end of period $3,096 $2,648
========== ========
Accrual for Bank Owned Cash Advances
- ------------------------------------
Balance at beginning of period $342 $55
Increase (decrease) in loss provision (47) (14)
---------- --------
Balance at end of period $295 $41
========== ========
Combined Statistics
- -------------------
Combined cash advance loss provision $5,634 $3,044
========== ========
Combined cash advance loss provision as a % of
combined cash advances written 3.2% 2.5%
========== ========
Charge-offs (net of recoveries) as a % of combined
cash advances written 3.9% 3.1%
========== ========
Combined allowance for losses and accrued bank
losses as a % of combined gross portfolio 7.9% 9.6%
========== ========
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
INCOME FROM CONTINUING OPERATIONS BY OPERATING SEGMENT
THREE MONTHS ENDED MARCH 31, 2005 AND 2004
(in thousands)
(Unaudited)
---------------------------------------------
Pawn Cash Check
Lending Advance Cashing Consolidated
----------- --------- ---------- ------------
Three Months Ended
March 31, 2005:
- ------------------
Revenue
Finance and service
charges $33,919 $-- $-- $33,919
Proceeds from
disposition of
merchandise 78,741 -- -- 78,741
Cash advance fees 8,980 19,330 -- 28,310
Check cashing royalties
and fees -- 2,888 1,131 4,019
----------- --------- ---------- ------------
Total revenue 121,640 22,218 1,131 144,989
Cost of revenue -
disposed merchandise 47,955 -- -- 47,955
----------- --------- ---------- ------------
Net revenue 73,685 22,218 1,131 97,034
----------- --------- ---------- ------------
Expenses
Operations 40,918 12,373 382 53,673
Cash advance loss
provision 2,193 3,441 -- 5,634
Administration 8,362 2,312 235 10,909
Depreciation and
amortization 3,792 1,691 83 5,566
----------- --------- ---------- ------------
Total expenses 55,265 19,817 700 75,782
----------- --------- ---------- ------------
Income from operations $18,420 $2,401 $431 $21,252
=========== ========= ========== ============
As of March 31, 2005:
- ---------------------
Total assets $417,288 $100,728 $7,101 $525,117
=========== ========= ========== ============
Three Months Ended
March 31, 2004:
- ------------------
Revenue
Finance and service
charges $26,872 $-- $-- $26,872
Proceeds from
disposition of
merchandise 67,048 -- -- 67,048
Cash advance fees 7,119 12,537 -- 19,656
Check cashing royalties
and fees -- 2,320 1,122 3,442
----------- --------- ---------- ------------
Total revenue 101,039 14,857 1,122 117,018
Cost of revenue -
disposed merchandise 40,829 -- -- 40,829
----------- --------- ---------- ------------
Net revenue 60,210 14,857 1,122 76,189
----------- --------- ---------- ------------
Expenses
Operations 33,935 7,253 380 41,568
Cash advance loss
provision 1,356 1,688 -- 3,044
Administration 9,082 1,817 208 11,107
Depreciation and
amortization 2,867 943 114 3,924
----------- --------- ---------- ------------
Total expenses 47,240 11,701 702 59,643
----------- --------- ---------- ------------
Income from operations $12,970 $3,156 $420 $16,546
=========== ========= ========== ============
As of March 31, 2004:
- ---------------------
Total assets of
continuing operations $280,245 $68,896 $7,676 $356,817
=========== ========= ========== ============
CONTACT: Cash America International, Inc., Fort Worth
Thomas A. Bessant, Jr., 817-335-1100